E-COMMERCE

BY
SOM DARSHAN PUROHIT
BBA-2024-27
SEC-A
ROLL-NO- 24UG101102
 INTRODUCTION
E-COMMERCE OR ELECTRONIC COMMERCE - DEFINED AS THE BUYING
AND SELLING OF GOODS AND SERVICES, OR THE TRANSMITTING OF
FUNDS OR DATA, OVER AN ELECTRONIC NETWORK I.E. INTERNET.

E-COMMERCE - A METHODOLOGY OF MODERN BUSINESS, WHICH

ADDRESSES THE NEED OF BUSINESS ORGANIZATIONS, VENDORS AND
CUSTOMERS TO REDUCE COST AND IMPROVE THE QUALITY OF GOODS
AND SERVICES WHILE INCREASING THE SPEED OF DELIVERY.
 Features in E-
Commerce
Non-Cash Payment

E-Commerce enables the use of credit cards, debit cards, smart cards, electronic fund transfer via

bank's website, and other modes of electronics payment.

24x7 Service availability − E-commerce automates the business of enterprises making it

available anytime, anywhere.

Advertising / Marketing − It helps in better marketing management of products/services.

Improved Sales − The 24*7 availability and advertising gives a big boost to existing sales

volumes.

Support − E-commerce provides pre-sales and post-sales assistance to provide better services

to customers.
E-COMMERCE ADVANTAGES
Advantages to Organizations

Advantages to Consumers

Advantages to Society
 Advantages to Organizations

Using e-commerce, organizations can expand their market to national and international
markets with minimum capital investment.
Helps organizations to reduce the cost to create process, distribute, retrieve and
manage the paper based information by digitizing the information

Improves the brand image of the company.

Helps organization to provide better customer services

Helps to simplify the business processes and makes them faster and efficient.
Reduces the paper work
 Advantages to Customers

It provides 24x7 support. Customers can enquire about a product or service and place
orders anytime, anywhere from any location.
Provides users with more options and quicker delivery of products.
Provides users with more options to compare and select the cheaper and better options.
A customer can put review comments about a product and can see the review
comments of other customers before making a final purchase

It provides readily available information - relevant detailed information within

seconds, rather than waiting for days or weeks.
 Advantages to Society

Customers need not travel to shop a product, thus less traffic on road and low air
pollution.
Helps in reducing
Has enabled rural the cost
areas to of products,
access so less
services and affluent
products,people
which can
are also afford not
otherwise the
products.
available to them.
Helps the government to deliver public services such as healthcare, education, social
services at a reduced cost and in an improved manner.
 Disadvantages
System Security and Privacy Concerns: E-commerce platforms often
face challenges ensuring security and privacy in online transactions.
High Initial Costs: Developing and implementing e-commerce solutions
can be expensive, especially for small businesses.
User Mistrust: Many users resist switching to online shopping due to a
lack of trust in unknown, faceless sellers.
Network and Bandwidth Limitations: In certain regions, limited
internet bandwidth can hinder smooth e-commerce operations.
Lack of Physical Interaction: The inability to physically inspect
products before purchase is a common drawback of online shopping
9
 Business-to-business
(B2B)
Business-to-business (B2B) e-commerce encompasses all electronic
transactions of goods, services or information ​between companies.
Producers and traditional commerce wholesalers typically operate with
this type of electronic commerce.
80% of e-commerce is of this type.
 Security in E-
Commerce
Security - an essential part of any transaction over the internet. Customers will lose his/her faith

in e-business if its security is compromised. Following are the essential requirements for safe e-

payments/transactions −

Confidentiality − Information should not be accessible to an unauthorized person

Integrity − Information should not be altered during its transmission over the network.

Availability − Information should be available wherever and whenever required within a time

limit specified.

Authenticity − mechanism to authenticate a user before giving him/her an access to the

required information.

Non-Repudiability − It is the protection against the denial of order or denial of payment. Once

a sender sends a message, the sender should not be able to deny sending the message.
 E-Business
E-business is the broadest term encompassing e-commerce and e-
marketing activities, but also customer relationship management (CRM)
or supply chain management (SCM).
e-business takes advantage of networked infrastructure to run a
business that allows it to reach a global audience, improve customer
service or develop a product offer using digital means.
Therefore, e-business entails both e-commerce and e-marketing. These
three are very closely tight and interpenetrate each other, but as you
can see they should not be used interchangeably.
Relation between e-business, e-marketing
and e-commerce
 E- market

E-marketing (or digital marketing) - A process of

planning, executing, distributing, promoting
and pricing of goods and services in a
networked environment (the Internet and the
World Wide Web) aimed at facilitating,
exchanging and fulfilling customers'
Difference between e-commerce and e-
marketing

E-marketing implies any kind of marketing facilitated online via

websites, online stores, and other online tools.
Whereas, Ecommerce is a type of online business that involves
commercial transactions, information exchange, and business
transactions through a wide network using the internet.
The primary objective of e-commerce is to finalize transactions between
businesses and customers, while e-marketing is a broader term
encompassing a whole spectrum of activities and its main objective is
not necessarily making a sale.